The dollar index is staying along the flat line on Wednesday morning in Asia after an over half a percent rise in the previous session. Investors remain on edge amid persistent trade-related uncertainties and renewed geopolitical risks stemming from the escalating Russia-Ukraine conflict and tensions in the Middle East. Meanwhile, focus shifts to the closely-watched US Nonfarm Payrolls (NFP) report, due on Friday for further cues. The dollar index that measures the greenback against a basket of currencies is quoting at 98.38, almost unchanged on the day. Yesterday, a sharp plunge in DXY basket currencies propped up the index. British pound tumbled around 1% against the dollar as UK's 30-year gilt climbed to their highest level in nearly 3 decades. Euro also collapsed sharply amid fiscal concerns across Europe. Germany's 10-year government bond yields also jumped toward 2.8%, its highest since late March, while 30-year borrowing costs reached levels not seen since 2011. Meanwhile, the Institute for Supply Management released a report showing a slight increase by its reading on U.S. manufacturing activity in the month of August, although the index still indicated the sixth consecutive month of contraction. While the ISM said its manufacturing PMI inched up to 48.7 in August after falling to a nine-month low of 48.0 in July, a reading below 50 still indicates contraction.
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